,i #aacth ,,congress #ast ,session ,h4 ,r4 #efg ,,in ,,the ,,house ,,of ,,representatives ,february #f1 #bjac ,mr4 ,rokita 7for himself1 ,mr4 ,lamborn1 ,mr4 ,garrett1 ,mr4 ,scalise1 ,mr4 ,mulvaney1 ,mr4 ,huelskamp1 ,mr4 ,broun of ,georgia1 ,mr4 ,westmoreland1 ,mr4 ,radel1 ,mr4 ,ross1 ,mr4 ,poe of ,texas1 ,mr4 ,holding1 ,mr4 ,hensarling1 ,mr4 ,duncan of ,south ,carolina1 ,mr4 ,cotton1 ,mr4 ,culberson1 ,mr4 ,huizenga of ,michigan1 ,mrs4 ,black1 ,mr4 ,bucshon1 ,mr4 ,bishop of ,utah1 ,mr4 ,stewart1 ,mr4 ,fleming1 ,mr4 ,pearce1 ,mr4 ,austin ,scott of ,georgia1 ,mr4 ,la,malfa1 ,mr4 ,marchant1 ,mr4 ,roe of ,tennessee1 ,mr4 ,palazzo1 ,mrs4 ,lummis1 ,mrs4 ,blackburn1 ,mr4 ,flores1 ,mr4 ,gohmert1 ,mr4 ,amodei1 ,mr4 ,mc,henry1 and ,mr4 ,schweikert7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committees on ,ways and ,means1 ,education and the ,workforce1 the ,judiciary1 ,natural ,resources1 ,house ,administration1 ,rules1 and ,appropriations1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,social ,security ,act to replace the ,medicaid program and the ,children's ,health ,insurance program with a block grant to the ,states1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,state ,health ,flexibility ,act of #bjac4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,health grants to the ,states for health care services to indigent individuals4 ,title ,,xxii--,,block ,,grants ,,to ,,states ,,for ,,health ,,care ,,services ,,to ,,indigent ,,individuals ,sec4 #bbja4 ,purpose4 ,sec4 #bbjb4 ,grants to ,states4 ,sec4 #bbjc4 ,administrative and fiscal accountability4 ,sec4 #bbjd4 ,nondiscrimination provisions4 ,sec4 #bbje4 ,emergency assistance4 ,sec4 #bbjf4 ,definitions4 ,sec4 #c4 ,repeal of ,,ppaca1 ,,hcera1 and the ,federal requirements of ,medicaid and ,,chip4 ,sec4 #d4 ,severability4 ,sec4 #e4 ,effective date4 #b4 ,health grants to the ,states for health care services to indigent individuals 7a7 ,health care block grant to ,states ,the ,social ,security ,act is amended by adding at the end the following new title3 ,,xxii ,,block ,,grants ,,to ,,states ,,for ,,health ,,care ,,services ,,to ,,indigent ,,individuals #bbja4 ,purpose ,the purpose of this title is to provide ,federal financial assistance to the ,states1 in the form of a single grant1 to allow the ,states maximum flexibility in providing1 and financing the provision of1 health-care-related items and services to indigent individuals4 #bbjb4 ,grants to ,states 7a7 ,in general ,subject to the requirements of this title1 each ,state is entitled to receive from the ,secretary of the ,treasury a grant for each quarter of fiscal years #bjad1 #bjae1 #bjaf1 #bjag1 #bjah1 #bjai1 #bjbj1 #bjba1 #bjbb1 and #bjbc1 in an amount that is equal to #be percent of the total amount received by a ,state under title ,,xix and title ,,xxi for fiscal year #bjab4 7b7 ,appropriation ,out of any money in the ,treasury of the ,united ,states not otherwise appropriated1 there are appropriated for fiscal years #bjad1 #bjae1 #bjaf1 #bjag1 #bjah1 #bjai1 #bjbj1 #bjba1 #bjbb1 and #bjbc such sums as are necessary for grants under this section4 7c7 ,requirements relating to intergovernmental financing ,the ,secretary of the ,treasury shall make the transfer of funds under grants under subsection 7a7 directly to each ,state in accordance with the requirements of section #fejc of title #ca1 ,united ,states ,code4 7d7 ,expenditure of funds 7#a7 ,in general ,except as provided in paragraph 7#b71 amounts received by a ,state under this title for any fiscal year shall be expended by the ,state in such fiscal year or in the succeeding fiscal year4 7#b7 ,use of rainy day fund permitted ,of the amounts received by a ,state under this title1 the ,state may set aside1 in a separate account1 such amounts as the ,state deems necessary to provide1 without fiscal limitation1 health-care-related items and services for indigent individuals during-- 7,a7 periods of unexpectedly high rates of unemployment2 or 7,b7 periods related to circumstances that are not described in subparagraph 7,a7 and that cause unexpected increases in the need for such items and services for such individuals4 7#c7 ,funds remaining after fiscal year #bjbb ,if1 after fiscal year #bjbc1 a ,state has funds in the account under paragraph 7#b71 the ,state may only expend such funds if such funds are used in a manner that is permitted under subsection 7e71 as such subsection is in effect on ,september #cj1 #bjbc4 7e7 ,use of funds ,a ,state may only use the amounts received under subsection 7a7 as follows3 7#a7 ,general purpose ,for the purpose under section #bbja1 including the provision of health-care-related items and services as required under section #bbje4 ,nothing in this title shall be construed as limiting the flexibility of a ,state to determine which providers of such items and services qualify to receive payment from a grant made to the ,state under this title4 7#b7 ,funding for risk adjustment mechanisms ,to fund qualified high risk pools1 reinsurance pools1 or other risk-adjustment mechanisms used for the purpose of subsidizing the purchase of private health insurance for the high-risk population4 7#c7 ,authority to use portion of ,federal assistance for other welfare-related programs 7,a7 ,in general ,subject to the limit under subparagraph 7,b71 to carry out a ,state program pursuant to any or all of the following provisions of law3 7i7 ,part ,a of title ,,iv of this ,act4 7ii7 ,section #afaf of this ,act4 7iii7 ,the ,food and ,nutrition ,act of #bjjh4 7,b7 ,limitation ,a ,state may not use more than #cj percent of the amount received under subsection 7a7 for a fiscal year to carry out a ,state program1 or programs1 under subparagraph 7,a74 7,c7 ,requirements on funds ,any amounts that are used under subparagraph 7,a7-- 7i7 shall not be subject to any of the requirements of subsection 7d71 subsection 7f71 section #bbjd1 or section #bbje2 and 7ii7 shall be subject to-- 7,i7 the audit requirements under section #bbjc2 and 7,,ii7 any requirements that apply to ,federal funds provided directly for such ,state program4 7f7 ,maintenance of current law restrictions on use of federal funds 7#a7 ,in general 7,a7 ,no funding for abortions ,none of the funds appropriated in this title shall be expended for any abortion4 7,b7 ,no funds for coverage of abortion ,none of the funds appropriated in this title shall be expended for health benefits coverage that includes coverage of abortion4 7,c7 ,health benefits coverage defined ,for purposes of this subsection1 the term health benefits coverage means the package of services covered by a managed care provider or organization pursuant to a contract or other arrangement4 7#b7 ,exceptions ,the limitations established in paragraph 7#a7 shall not apply to an abortion-- 7,a7 if the pregnancy is the result of an act of rape or incest2 or 7,b7 in the case where a woman suffers from a physical disorder1 physical injury1 or physical illness that would1 as certified by a physician1 place the woman in danger of death unless an abortion is performed1 including a life-endangering physical condition caused by or arising from the pregnancy itself4 7#c7 ,state funds used in conjunction with ,federal funds ,the limitations established in paragraph 7#a7 shall apply to any ,state funds used in conjunction with ,federal funds appropriated under this title to provide1 or finance the provision of1 health-care-related items and services to indigent individuals pursuant to section #bbja or subsections 7d77#b71 7e77#a71 or 7e77#b7 of this section4 7#d7 ,option to purchase separate coverage or plan ,nothing in this subsection shall be construed as prohibiting a ,state from purchasing separate coverage for abortions for which funding is prohibited under this subsection1 or a health plan that includes such abortions1 so long as such coverage or plan is paid for entirely using funds not provided by this title4 7#e7 ,option to offer coverage or plan ,nothing in this subsection shall restrict any health insurance issuer from offering separate coverage for abortions for which funding is prohibited under this subsection1 or a health plan that includes such abortions1 so long as-- 7,a7 premiums for such separate coverage or plan are paid entirely with funds not provided by this title2 and 7,b7 administrative costs and all services offered through such separate coverage or plan are paid for using only premiums collected for such coverage or plan4 7#f7 ,conscience protections 7,a7 ,none of the funds appropriated in this ,act may be made available to a ,federal agency or program1 or to a ,state or local government1 if such agency1 program1 or government subjects any institutional or individual health care entity to discrimination on the basis that the health care entity does not provide1 pay for1 provide coverage of1 or refer for abortions4 7,b7 ,in this paragraph1 the term health care entity includes an individual physician or other health care professional1 a hospital1 a provider-sponsored organization1 a health maintenance organization1 a health insurance plan1 or any other kind of health care facility1 organization1 or plan4 7g7 ,no funding for illegal aliens ,except as provided under this section and section #bbje1 no funds appropriated in this title may be used to provide health-care-related items and services to an alien who is not lawfully admitted for permanent residence or otherwise permanently residing in the ,united ,states under color of law4 7h7 ,nonentitlement ,nothing in this title shall be construed as providing an individual with an entitlement to health-care-related items and services under this title4 #bbjc4 ,administrative and fiscal accountability 7a7 ,audits 7#a7 ,contract with approved auditing entity ,not later than ,october #a1 #bjad1 and annually thereafter1 a ,state shall contract with an approved auditing entity 7as defined under paragraph 7#c77;,b77 for purposes of conducting an audit under paragraph 7#b7 7with respect to the fiscal year ending ,september #cj of such year74 7#b7 ,audit requirement ,under a contract under paragraph 7#a71 an approved auditing entity shall conduct an audit of the expenditures or transfers made by a ,state from amounts received under a grant under this title1 or from ,state funds described in section #bbjb7;f77#c71 with respect to the fiscal year which such audit covers1 to determine the extent to which such expenditures and transfers were expended in accordance with this title4 7#c7 ,entity conducting audit 7,a7 ,in general ,with respect to a ,state1 the audit under paragraph 7#b7 shall be conducted by an approved auditing entity in accordance with generally accepted auditing principles4 7,b7 ,approved auditing entity ,for purposes of this section1 the term approved auditing entity means1 with respect to a ,state1 an entity that is-- 7i7 approved by the ,secretary of the ,treasury2 7ii7 approved by the chief executive officer of the ,state2 and 7iii7 independent of any ,federal1 ,state1 or local agency4 7#d7 ,submission of audit ,not later than ,december #ca1 #bjad1 and annually thereafter1 a ,state shall submit the results of the audit under paragraph 7#b7 7with respect to the fiscal year ending on ,september #cj of such year7 to the ,state legislature and to the ,secretary of the ,treasury4 7#e7 ,additional accounting requirements ,the provisions of chapter #ge of title #ca1 ,united ,states ,code1 shall apply to the audit requirements of this section4 7b7 ,reimbursement and penalty 7#a7 ,in general ,if1 through an audit conducted under subsection 7a71 an approved auditing entity finds that any amounts paid to a ,state under a grant under this title were not expended in accordance with this title-- 7,a7 the ,state shall pay to the ,treasury of the ,united ,states any such amount1 plus #aj percent of such amount as a penalty2 or 7,b7 the ,secretary of the ,treasury shall offset such amount plus the #aj percent penalty against any other amount in any other fiscal year that the ,state may be entitled to receive under a grant under this title4 7#b7 ,misuse of ,state funds ,if1 through an audit conducted under subsection 7a71 an approved auditing entity finds that a ,state violated the requirements of section #bbjb7;f77#c71 the ,state shall pay to the ,treasury of the ,united ,states #ajj percent of the amount of ,state funds that were used in violation of section #bbjb7;f77#c7 as a penalty4 ,insofar as a ,state fails to pay any such penalty1 the ,secretary of the ,treasury shall offset the amount not so paid against the amount of any grant otherwise payable to the ,state under this title4 7c7 ,annual reporting requirements 7#a7 ,in general ,not later than ,january #ca1 #bjae1 and annually thereafter1 each ,state shall submit to the ,secretary of the ,treasury and the ,state legislature a report on the activities carried out by the ,state during the most recently completed fiscal year with funds received by the ,state under a grant under this title for such fiscal year4 7#b7 ,content ,a report under paragraph 7#a7 shall1 with respect to a fiscal year-- 7,a7 contain the results of the audit conducted by an approved auditing entity for a ,state for such fiscal year1 in accordance with the requirements of subsection 7a7 of this section2 7,b7 specify the amount of the grant made to the ,state under this title that is used to carry out a program under section #bbjb7;e77#c72 and 7,c7 be in such form and contain such other information as the ,state determines is necessary to provide-- 7i7 an accurate description of the activities conducted by the ,state for the purpose described under section #bbja and any other use of funds permitted under subsections 7d7 and 7e7 of section #bbjb2 and 7ii7 a complete record of the purposes for which amounts were expended in accordance with this title4 7#c7 ,conformity with accounting principals ,any financial information in the report under paragraph 7#a7 shall be prepared and reported in accordance with generally accepted accounting principles1 including the provisions of chapter #ge of title #ca1 ,united ,states ,code4 7#d7 ,public availability ,a ,state shall make copies of the reports required under this section available on a public ,web site and shall make copies available in other formats upon request4 7d7 ,failure ,to comply with requirements ,the ,secretary of the ,treasury shall not make any payment to a ,state under a grant authorized by section #bbjb7;a7-- 7#a7 if an audit for a ,state is not submitted as required under subsection 7a71 during the period between the date such audit is due and the date on which such audit is submitted2 7#b7 if a ,state fails to submit a report as required under subsection 7c71 during the period between the date such report is due and the date on which such report is submitted2 or 7#c7 if a ,state violates a requirement of section #bbjb7;f71 during the period beginning on the date the ,secretary becomes aware of such violation and the date on which such violation is corrected by the ,state4 7e7 ,administrative supervision and oversight 7#a7 ,limited role for ,secretary of ,treasury and the ,attorney general 7,a7 ,treasury ,the authority of the ,secretary of the ,treasury under this title is limited to-- 7i7 promulgating regulations1 issuing rules1 or publishing guidance documents to the extent necessary for purposes of implementing subsection 7a77#c77;,b71 subsection 7b71 and subsection 7d72 7ii7 making quarterly payments to the ,states under grants under this title in accordance with section #bbjb7;a72 7iii7 approving entities under subsection 7a77#c77;,b7 for purposes of the audits required under subsection 7a72 7iv7 withholding payment to a ,state of a grant under subsection 7d7 or offsetting a payment of such a grant to a ,state under subsection 7b72 and 7v7 exercising the authority relating to nondiscrimination that is specified in section #bbjd7;b74 7,b7 ,attorney general ,the authority of the ,attorney ,general to supervise the amounts received by a ,state under this title is limited to the authority under section #bbjd7;c74 7#b7 ,federal supervision 7,a7 ,in general ,except as provided under paragraph 7#a71 an administrative officer1 employee1 department1 or agency of the ,united ,states 7including the ,secretary of ,health and ,human ,services7 may not-- 7i7 supervise-- 7,i7 the amounts received by the ,states under this title2 or 7,,ii7 the use of such amounts by the ,states2 or 7ii7 promulgate regulations or issue rules in accordance with this title4 7,b7 ,limitation on ,secretary of ,health and ,human ,services ,the ,secretary of ,health and ,human ,services shall have no authority over any provision of this title4 7f7 ,reservation of ,state powers ,nothing in this section shall be construed to limit the power of a ,state1 including the power of a ,state to pursue civil and criminal penalties under ,state law against any individual or entity that misuses1 or engages in fraud or abuse related to1 the funds provided to a ,state under this title4 #bbjd4 ,nondiscrimination provisions 7a7 ,no discrimination against individuals ,no individual shall be excluded from participation in1 denied the benefits of1 or subjected to discrimination under1 any program or activity funded in whole or in part with amounts paid to a ,state under this title on the basis of such individual's-- 7#a7 disability under section #ejd of the ,rehabilitation ,act of #aigc 7#bi ,u4,s4,c4 #gid72 7#b7 sex under title ,,ix of the ,education ,amendments of #aigb 7#bj ,u4,s4,c4 #afha et seq472 or 7#c7 race1 color1 or national origin under title ,,vi of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;d et seq474 7b7 ,compliance 7#a7 ,if the ,secretary of the ,treasury determines that a ,state or an entity that has received funds from amounts paid to a ,state under a grant under this title has failed to comply with a provision of law referred to in subsection 7a71 the ,secretary of the ,treasury shall notify the chief executive officer of the ,state of such failure to comply and shall request that such chief executive officer secure such compliance4 7#b7 ,if1 not later than #fj days after receiving notification under paragraph 7#a71 the chief executive officer of a ,state fails or refuses to secure compliance with the provision of law referred to in such notification1 the ,secretary of the ,treasury may-- 7,a7 refer the matter to the ,attorney ,general with a recommendation that an appropriate civil action be instituted2 or 7,b7 exercise the powers and functions provided under section #eje of the ,rehabilitation ,act of #aigc 7#bi ,u4,s4,c4 #gid;a71 title ,,ix of the ,education ,amendments of #aigb 7#bj ,u4,s4,c4 #afha et seq471 or title ,,vi of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;d et seq47 7as applicable74 7c7 ,civil actions ,if a matter is referred to the ,attorney ,general under subsection 7b77#b77;,a71 or the ,attorney ,general has reason to believe that a ,state or entity has failed to comply with a provision of law referred to in subsection 7a71 the ,attorney ,general may bring a civil action in an appropriate district court of the ,united ,states for such relief as may be appropriate1 including injunctive relief4 #bbje4 ,emergency assistance 7a7 ,in general ,a ,state that receives a grant under this title for a fiscal year shall provide payment for health-care-related items and services provided to a citizen1 legal resident1 or an alien who is not lawfully admitted for permanent residence or otherwise permanently residing in the ,united ,states under color of law1 consistent with the requirements of section #ahfg1 if-- 7#a7 such health-care-related items and services are-- 7,a7 necessary for the treatment of an emergency medical condition2 and 7,b7 health-care-related items and services that such ,state would provide payment for under this title1 if provided to an indigent individual2 7#b7 the individual meets all necessary eligibility requirements for health-care-related items and services under the ,state program funded under this title1 except for any requirement related to immigration status2 and 7#c7 such items and services are not related to an organ transplant procedure4 7b7 ,emergency medical condition ,for purposes of this section1 the term emergency medical condition means a medical condition 7including emergency labor and delivery7 manifesting itself by acute symptoms of sufficient severity 7including severe pain7 such that the absence of immediate medical attention could reasonably be expected to result in-- 7#a7 placing the patient's health in serious jeopardy2 7#b7 serious impairment to bodily functions2 or 7#c7 serious dysfunction of any bodily organ or part4 #bbjf4 ,definitions ,for purposes of this title3 7#a7 ,health-care-related items and services ,the term health-care-related items and services shall be defined by a ,state with respect to use of such term for purposes of the application of this title to the ,state4 7#b7 ,high-,risk ,population ,the term high-risk population means individuals who are described in one of the following subparagraphs3 7,a7 ,individuals who1 by reason of the existence or history of a medical condition1 are able to acquire health coverage only at rates which are at least #aej percent of the standard risk rates for such coverage4 7,b7 ,individuals who are provided health coverage by a qualified high risk pool4 7#c7 ,indigent individual ,the term indigent individual shall be defined by a ,state with respect to use of such term for purposes of the application of this title to the ,state4 7#d7 ,qualified high risk pool ,the term qualified high risk pool has the meaning given such term in section #bgde7;g77#a77;,a7 of the ,public ,health ,service ,act4 7#e7 ,risk-,adjustment ,mechanism ,defined ,for purposes of this section1 the term risk-adjustment mechanism means any risk-spreading mechanism to subsidize the purchase of private health insurance for the high-risk population1 including a qualified high risk pool4 4 7b7 ,report on reduction of ,federal administrative expenditures ,beginning not later than ,october #ca1 #bjad1 and annually thereafter until ,october #ca1 #bjbc1 the ,secretary of ,health and ,human ,services1 in consultation with the ,secretary of the ,treasury1 shall submit a report to the ,committee on ,energy and ,commerce in the ,house of ,representatives and the ,finance ,committee in the ,senate containing a description of the total reduction in ,federal expenditures required to administer and provide oversight for the programs to provide health-care-related items and services to indigent individuals under this ,act1 compared to the expenditures required to administer and provide oversight for the programs under titles ,,xix and ,,xxi of the ,social ,security ,act1 as in effect on ,september #cj1 #bjab4 7c7 ,state defined ,section #aaja7;a77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acja7;a77#a77 is amended-- 7#a7 in the first sentence1 by striking and ,,xxi and inserting ,,xxi1 and ,,xxii2 and 7#b7 in the fourth sentence1 by striking and ,,xxi and inserting 1 ,,xxi1 and ,,xxii4 #c4 ,repeal of ,,ppaca1 ,,hcera1 and the ,federal requirements of ,medicaid and ,,chip 7a7 ,,ppaca ,the ,patient ,protection and ,affordable ,care ,act 7,public ,law #aaa-adh7 is repealed1 and the provisions of law amended or repealed by such ,act are restored or revived as if such ,act had not been enacted4 7b7 ,,hcera ,title ,i and subtitle ,b of title ,,ii of the ,health ,care and ,education ,reconciliation ,act of #bjaj 7,public ,law #aaa-aeb7 are repealed1 and the provisions of law amended or repealed by such title or subtitle1 respectively1 are restored or revived as if such title and subtitle had not been enacted4 7c7 ,medicaid and ,,chip ,titles ,,xix and ,,xxi of the ,social ,security ,act are repealed4 #d4 ,severability ,if any provision of this ,act1 or the application of such provision to any person or circumstance1 is found to be unconstitutional1 the remainder of this ,act1 or the application of that provision to other persons or circumstances1 shall not be affected4 #e4 ,effective date ,this ,act and the amendments made by this ,act shall take effect with respect to items and services furnished on or after ,october #a1 #bjac4